Merriman upgraded Smith & Wesson (NASDAQ:SWHC) to Buy from Neutral on valuation after channel checks indicated an increase in gun sales in October after an Obama win became apparent. The firm believes shares can trade up into the $4 to $5 range.
Credit Suisse upgraded Wells Fargo (NYSE:WFC) to Outperform from Neutral citing the company's improved balance and potential earnings power following its $11B equity offering.
JP Morgan upgraded Coca-Cola Enerprises (NYSE:CCE) to Overweight from Neutral on valuation and easing commodity and labor costs.
Manulife (NYSE:MFC) was raised to Outperform from Sector Perform at RBC Capital.
Molina Healthcare (NYSE:MOH) was upgraded to Equal Weight from Underweight at Barclays.
Analyst downgrades:
Barclays downgraded General Motors (NYSE:GM) to Underweight from Equal Weight on cash concerns and believes any assistance from the government would substantially dilute equity holders. Barclays set a $1 target on GM shares.
Stephens cut LandAmerica (NYSE:LFG) to Underweight from Equal Weight following the Fidelity National (NYSE:FNF) takeover as they expect no other bidders to emerge and believe shares could go back to under $5 if Fidelity National walks away.
Deutsche Bank downgraded solar companies to reflect deteriorating fundamentals in the sector, an adequate supply of c-Si modules, the strengthening dollar and restricted access to capital. First Solar (NASDAQ:FSLR), Canadian Solar (NASDAQ:CSIQ), Energy Conversion (NASDAQ:ENER) and Sunpower (NASDAQ:SPWRA) were downgraded to Hold from Buy.
FMC Technologies (NYSE:FTI) was lowered to Underweight from Neutral at JP Morgan.
Analyst initiations:
Freeport McMoRan, HLS Systems, and Kimberly Clark were today's noteworthy initiations:
Banc of America expects Freeport McMoRan's (NYSE:FCX) earnings will decline sharply in 2009 and thinks the dividend could be at risk. Shares were initiated with a Neutral rating and $29 target.
Roth Capital initiated HLS Systems (NASDAQ:HOLI) with a Buy rating and $5 target. The firm is positive on the company's management team and the company's outlook for EPS growth.
Citigroup thinks Kimberly Clark's (NYSE:KMB) margins have bottomed and that the current valuation is too low. Shares were assumed with a Buy rating and $65 target.
MOST NOTEWORTHY: K Swiss, BJ's Restaurants and Ford were today's noteworthy downgrades:
Merrill expects the turnaround at K Swiss (NASDAQ: KSWS) to be difficult given weakening retail sales. Shares were downgraded to Sell from Neutral.
Jefferies cut shares of BJ's Restaurants (NASDAQ: BJRI) to Hold from Buy due to the company's high relative exposure to the subprime mortgage markets.
Ford (NYSE: F) was downgraded to Underperform from Peer Perform at Bear Stearns. The firm recommends taking some profits following the recent rally in shares. Shares were also cut to Neutral from Overweight at JP Morgan, citing valuation, and to Sell from Neutral at Merrill Lynch.
MOST NOTEWORTHY: BHP Billiton, Rio Tinto and Prudential Financial were today's noteworthy upgrades:
Bernstein upgraded shares of BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) to Outperform from Market Perform as they believe urbanization in China will increase demand for metals.
Prudential Financial (NYSE: PRU) was raised to Overweight from Underweight at Lehman as they believe the company's exposure to commercial mortgage-backed securities is limited.
MOST NOTEWORTHY: Pharmacopeia, Zumiez, Norfolk Southern and OccuLogix were today's noteworthy upgrades:
CIBC upgraded Pharmacopeia (NASDAQ: PCOP) to Sector Outperformer from Sector Performer, as they believe its lead cardiovascular drug DARA has the potential to become an important new therapy for hypertension and diabetic nephropathy.
Think Equity upgraded shares of Zumiez (NASDAQ: ZUMZ) to Buy from Accumulate to reflect the company's strong same store sales growth.
Caris upgraded shares of OccuLogix (NASDAQ: OCCX) to Above Average from Average, as they believe weakness in the stock creates a buying opportunity. The firm believes the stock has dropped due to concerns about the company's cash position, but thinks the current stock price underestimates the revenue potential of the company's assets.
OTHER UPGRADES:
BRE Properties (NYSE: BRE) was upgraded to Outperform from Neutral at Credit Suisse.
MOST NOTEWORTHY: Walgreen, CBS Corp, SL Green Realty, Brandywine Realty Trust and Navteq were today's noteworthy downgrades:
Walgreen (NYSE: WAG) was downgraded to Neutral from Buy at Merrill and to Market Perform from Outperform following its weak Q4 report. Merrill sees limited upside following the worse-than-expected quarter.
CBS Corporation (NYSE: CBS) was downgraded to Hold from Buy at Deutsche Bank to reflect the company's soft rating trends and poor local advertising growth.
Banc of America downgraded shares of SL Green Realty (NYSE: SLG) and Brandywine Realty Trust (NYSE: BDN) to Neutral from Buy. The firm downgraded shares of SL Green to reflect their more cautious stance on the office sector and believes uncertainty over cap rates will limit share upside, and downgraded shares of Brandywine to reflect a lack of near-term catalysts and their more cautious stance on the office sector.
Navteq Corporation (NYSE: NVT) was downgraded to Neutral from Buy at UBS and to Market Perform from Outperform at JMP Securities following its acquisition by Nokia Corporation (NYSE: NOK).
OTHER DOWNGRADES:
Goldman Sachs removed Monsanto Company (NYSE: MON) from its Conviction Buy List.
MOST NOTEWORTHY: EMC Corporation, Tesco PLC, SL Green Realty, Ariba and Motorola were today's noteworthy upgrades:
EMC Corporation (NYSE: EMC) was upgraded to Outperform from Peer Perform at Bear Stearns on valuation. Shares were also upgraded to Buy from Hold at Citigroup after coming off restriction to reflect the long-term benefits of virtualization and valuation.
Tesco (OTC: TSCDY) was upgraded to Buy from Hold at Citigroup on valuation and the company's growth prospects.
SL Green Realty Corporation (NYSE: SLG) was upgraded to Buy from Hold at Keybanc based on valuation. The firm views concerns regarding NYC office demand as overblown.
Cowen expects FY07 to be a tough year for Ariba Inc (NASDAQ: ARBA) as benefits from the on-demand subscription model are realized. The firm upgraded shares to Outperform from Market Perform.
Motorola Inc (NYSE: MOT) was upgraded to Outperform from Sector Perform at RBC Capital citing firming trends in its handset division.
MOST NOTEWORTHY: Applix, Time Warner, Apple and Level 3 Communications were today's noteworthy downgrades:
Applix Inc (NASDAQ: APLX) was downgraded to Neutral from Buy at First Albany and SunTrust Robinson Humphrey following the acquisition by Cognos Inc (NASDAQ: COGN).
Time Warner Inc (NYSE: TWX) was downgrade to Neutral from Buy at Pali Capital. The firm has lost faith in Time Warner's executive management team and Board of Directors and feels the outlook for AOL is concerning.
Gabelli downgraded Apple Inc (NASDAQ: AAPL) shares to Hold from Buy on iPhone concerns and valuation as they view the iPhone price cut as an indication that sales are not living up to management's expectations.
Buckingham Research downgraded shares of Level 3 Communications Inc (NASDAQ: LVLT) to Underperform from Neutral citing deterioration in demand for some key products.
OTHER DOWNGRADES:
SL Green Realty (NYSE: SLG) was downgraded to Equal Weight from Overweight at Lehman Brothers.
Citigroup downgraded shares of Volkswagen AG (OTC: VLKAY) to Sell from Hold.
Zumiez Inc (NASDAQ: ZUMZ) was downgraded to Market Perform from Outperform at Morgan Keegan.
MOST NOTEWORTHY: AutoNation (AN), Darden Restaurants (DRI), Rare Hospitality (RARE) and ChoicePoint (CPS) were today's noteworthy downgrades:
Goldman cut AutoNation (NYSE: AN) to Sell from Neutral based on potential for additional earnings shortfalls. The firm does not expect a sharp rebound in shares.
Bear Stearns downgraded Darden Restaurants (NYSE: DRI) to Peer Perform from Outperform following its acquisition of Rare Hospitality.
Rare Hospitality (NASDAQ: RARE) was cut to Hold from Buy at Keybanc following the acquisition offer from Darden.
ChoicePoint (NYSE: CPS) was cut to Reduce from Neutral at Suntrust, citing the difficult macro environment, which will impact revenue growth in its low-barrier commoditized non-insurance operations...
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Analyst upgrades:
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